Global bond markets fell in May and June, as investors contemplated the end of massive liquidity from the U.S. Federal Reserve’s bond-buying program. The fund’s overweight exposure to the strengthening U.S. dollar aided performance during the quarter, as did our holdings of commercial mortgage-backed securities. Our mortgage credit holdings and our allocation to high-yield bonds generated positive returns early in the period before investors began to shed risk in May, but the positions remained positive overall for the quarter. We have a generally positive outlook for global economic growth and are seeking to capitalize on opportunities in spread sectors exhibiting improved relative value.
07 August 2013--Understanding the Fed's Latest MovesEconReport
The Federal Reserve Chairman, Ben Bernanke, made some statements on 19 June 2013 that sent shockwaves
throughout the financial markets in the United States and Asia. There is no change in policy. This, Chairman Bernanke,
emphatically stated several times at the 19 June 2013 press conference. So why did the markets react the way they did?
This analysis will assist in understanding why the markets responded in the manner that they did to Chairman Bernanke's
suggestion that the asset-purchasing program will “taper off” in late 2013 or in mid- to late-2014 although this possibility
is clearly stated in the Federal Reserve's Open Market Committee's (FOMC's) 22 May 2013 statement.
As Fed tapering unfolds, we expect to see stronger growth from developed markets, while emerging markets in aggregate may experience further currency and capital market weakness. In the United States, declining labor participation continues to drive falling unemployment figures, and may harbor the beginning of a wage inflation surprise.
• We expect credit, liquidity, and prepayment risks will continue to
be rewarded by the market in the months ahead, while interestrate
risk remains unattractive due to its asymmetric risk profile.
Lately, there's been a lot of focus on the Fed and the potential for tapering. In today's Topic Talks, NEPC's Jennifer Appel breaks down the Federal Reserve's toolbox, the basics of quantitative easing, how tapering works, and what it could mean for capital markets.
07 August 2013--Understanding the Fed's Latest MovesEconReport
The Federal Reserve Chairman, Ben Bernanke, made some statements on 19 June 2013 that sent shockwaves
throughout the financial markets in the United States and Asia. There is no change in policy. This, Chairman Bernanke,
emphatically stated several times at the 19 June 2013 press conference. So why did the markets react the way they did?
This analysis will assist in understanding why the markets responded in the manner that they did to Chairman Bernanke's
suggestion that the asset-purchasing program will “taper off” in late 2013 or in mid- to late-2014 although this possibility
is clearly stated in the Federal Reserve's Open Market Committee's (FOMC's) 22 May 2013 statement.
As Fed tapering unfolds, we expect to see stronger growth from developed markets, while emerging markets in aggregate may experience further currency and capital market weakness. In the United States, declining labor participation continues to drive falling unemployment figures, and may harbor the beginning of a wage inflation surprise.
• We expect credit, liquidity, and prepayment risks will continue to
be rewarded by the market in the months ahead, while interestrate
risk remains unattractive due to its asymmetric risk profile.
Lately, there's been a lot of focus on the Fed and the potential for tapering. In today's Topic Talks, NEPC's Jennifer Appel breaks down the Federal Reserve's toolbox, the basics of quantitative easing, how tapering works, and what it could mean for capital markets.
The global economy is improving overall, with the U.S. and U.K. leading the way. We expect higher GDP growth from the U.S. to support risk assets in the third quarter. We continue to expect a rise in U.S. interest rates in 2014, though eurozone policy may help slow a near-term increase. We favor credit, prepayment, and liquidity risks, which we express in allocations to mezzanine CMBS, peripheral European sovereigns, select EM sovereigns, and interest-only (IO) CMOs.
Bonds, Interest rates, and the Impact of InflationDolf Dunn
Bonds have had their 30+ year bull run, now it is time to pay close attention to the bonds you own. For decades, most people’s bond portfolios were just on autopilot, this will get you hurt going forward. Please read on..
No bubble trouble; stocks are still reasonably priced. This credit cycle has unique characteristics that continue to make high-yield bonds attractive. Interest-rate volatility poses greater risk than higher rates themselves.
Bonds, Interest rates, and the Impact of InflationDolf Dunn
Since May, interest rates on bonds have drifted upwards and values have declined. Investing in bonds can no longer be left on auto-pilot. Please read on...
Monthly Market Perspective - June 2016David Berger
The drivers of short-term market moves can be vastly different from those which underpin the cycles of longer-term market direction. This month we examine a variety of these factors.
Signs of inflation will raise the stakes for the Fed’s policy communications. Favorable conditions for leveraged strategies could reverse quickly. Reasonable valuations and the Fed’s policy goals continue to support risk assets.
Signs of an impending stock market crashSwapnilRege2
Stock Markets Greed Fear market Pyschology Sotck market Fluctuations Signs of Stock market reaching the top Initial signs of bear market beginning Market fluctuations
A review of Q4 2015 corporate earnings reveals a significant slowdown in revenue and earnings growth. While these developments have been affected by the sharp decline in commodity prices,they may reveal early signs of recessionary conditions.
U.S. equities continued their impressive advance, with
no significant declines during the quarter. In Europe, policy changes may function as an important tailwind for growth and market performance. Globally, M&A activity has been on the rise, giving a boost to equity prices across the market-cap spectrum. The current bull market has been significant — in terms of both length and magnitude.
• Spread sectors continued to rally as investors focused more on opportunities than on risks.
• The Fed maintained its stance, but new questions emerged about how much further influence the central bank can exert.
• With tax rates fixed for the near term, policymakers turned their attention to spending cuts.
• Despite tighter valuations in corporate credit, we foresee continued solid demand and fundamentals.
What does it mean to be a reserve currency? How did the U.S. dollar achieve reserve status? And what does the "exorbitant privilege" mean for the U.S.? NEPC's Jennifer Appel, CFA breaks it down in today's Topic Talks.
Pacific Asset Management is sub-advisor to the AdvisorShares Pacific Asset Enhanced Floating Rate ETF (FLRT)*
2014 has seen the consensus of higher Treasury yields and economic activity fail to materialize. Lower rates and risk premiums have led to strong returns year-to-date. In this commentary, Portfolio Managers David Weismiller, Michael Marzouk, and Bob Boyd discuss the current market environment, outlook, and portfolio positioning.
*Effective but not available for sale at this time. Go to www.advisorshares.com for more information.
The overriding factor influencing fixed-income performance was the market’s changing expectations as to when the Federal Reserve would begin tapering its quantitative easing program. The fund’s mortgage prepayment strategies, most notably our holdings of collateralized mortgage obligations, detracted from performance before rebounding in June. Our interest-rate and yield-curve positioning aided performance during the quarter. Our near-term outlook calls for continued positive economic growth and a potentially range-bound interest-rate environment.
The global investment landscape was disrupted by rising bond yields, as investors contemplated a scaling back of the U.S. Federal Reserve’s bond-buying program. Within fixed income, our mortgage prepayment strategies detracted from performance but rebounded in June, while our term-structure positioning and holdings of commercial mortgage-backed securities aided results. Stock selection within directional strategies and currency positioning in non-directional strategies hampered returns in the 500 Fund and 700 Fund. We have a generally positive outlook for global economic growth and began to modestly increase the funds’ risk positioning in U.S. equities and global fixed income as the quarter concluded.
The global economy is improving overall, with the U.S. and U.K. leading the way. We expect higher GDP growth from the U.S. to support risk assets in the third quarter. We continue to expect a rise in U.S. interest rates in 2014, though eurozone policy may help slow a near-term increase. We favor credit, prepayment, and liquidity risks, which we express in allocations to mezzanine CMBS, peripheral European sovereigns, select EM sovereigns, and interest-only (IO) CMOs.
Bonds, Interest rates, and the Impact of InflationDolf Dunn
Bonds have had their 30+ year bull run, now it is time to pay close attention to the bonds you own. For decades, most people’s bond portfolios were just on autopilot, this will get you hurt going forward. Please read on..
No bubble trouble; stocks are still reasonably priced. This credit cycle has unique characteristics that continue to make high-yield bonds attractive. Interest-rate volatility poses greater risk than higher rates themselves.
Bonds, Interest rates, and the Impact of InflationDolf Dunn
Since May, interest rates on bonds have drifted upwards and values have declined. Investing in bonds can no longer be left on auto-pilot. Please read on...
Monthly Market Perspective - June 2016David Berger
The drivers of short-term market moves can be vastly different from those which underpin the cycles of longer-term market direction. This month we examine a variety of these factors.
Signs of inflation will raise the stakes for the Fed’s policy communications. Favorable conditions for leveraged strategies could reverse quickly. Reasonable valuations and the Fed’s policy goals continue to support risk assets.
Signs of an impending stock market crashSwapnilRege2
Stock Markets Greed Fear market Pyschology Sotck market Fluctuations Signs of Stock market reaching the top Initial signs of bear market beginning Market fluctuations
A review of Q4 2015 corporate earnings reveals a significant slowdown in revenue and earnings growth. While these developments have been affected by the sharp decline in commodity prices,they may reveal early signs of recessionary conditions.
U.S. equities continued their impressive advance, with
no significant declines during the quarter. In Europe, policy changes may function as an important tailwind for growth and market performance. Globally, M&A activity has been on the rise, giving a boost to equity prices across the market-cap spectrum. The current bull market has been significant — in terms of both length and magnitude.
• Spread sectors continued to rally as investors focused more on opportunities than on risks.
• The Fed maintained its stance, but new questions emerged about how much further influence the central bank can exert.
• With tax rates fixed for the near term, policymakers turned their attention to spending cuts.
• Despite tighter valuations in corporate credit, we foresee continued solid demand and fundamentals.
What does it mean to be a reserve currency? How did the U.S. dollar achieve reserve status? And what does the "exorbitant privilege" mean for the U.S.? NEPC's Jennifer Appel, CFA breaks it down in today's Topic Talks.
Pacific Asset Management is sub-advisor to the AdvisorShares Pacific Asset Enhanced Floating Rate ETF (FLRT)*
2014 has seen the consensus of higher Treasury yields and economic activity fail to materialize. Lower rates and risk premiums have led to strong returns year-to-date. In this commentary, Portfolio Managers David Weismiller, Michael Marzouk, and Bob Boyd discuss the current market environment, outlook, and portfolio positioning.
*Effective but not available for sale at this time. Go to www.advisorshares.com for more information.
The overriding factor influencing fixed-income performance was the market’s changing expectations as to when the Federal Reserve would begin tapering its quantitative easing program. The fund’s mortgage prepayment strategies, most notably our holdings of collateralized mortgage obligations, detracted from performance before rebounding in June. Our interest-rate and yield-curve positioning aided performance during the quarter. Our near-term outlook calls for continued positive economic growth and a potentially range-bound interest-rate environment.
The global investment landscape was disrupted by rising bond yields, as investors contemplated a scaling back of the U.S. Federal Reserve’s bond-buying program. Within fixed income, our mortgage prepayment strategies detracted from performance but rebounded in June, while our term-structure positioning and holdings of commercial mortgage-backed securities aided results. Stock selection within directional strategies and currency positioning in non-directional strategies hampered returns in the 500 Fund and 700 Fund. We have a generally positive outlook for global economic growth and began to modestly increase the funds’ risk positioning in U.S. equities and global fixed income as the quarter concluded.
Municipal bond prices moved lower during the second quarter, as fears about the Federal Reserve tapering its stimulus program rattled the financial markets. While a handful of states still face some budget pressure for the remainder of their 2013 fiscal year, 45 states reported that they are likely to meet or exceed their revenue projections for fiscal year 2013. Interest-rate volatility and the longer term prospect of higher rates have reinforced our bias toward a more limited duration stance. We continue to overweight essential-service revenue bonds, as well as the A-rated and BBB-rated segments of the market. Our outlook calls for defaults to remain low and continued gradual economic recovery.
• Infrastructure—the other big fix
• What is the stock market saying about earnings?
• As short-term markets thaw, bond investors focus on long-term risk
• Hedge funds suffer their worst month ever
• Does a $1 trillion deficit matter?
• Q&A: Sizing up Obama’s policies and politics
LBS Asset Allocation August Update - July 28, 2017Mark MacIsaac
Global economic data continue to point to robust and synchronized economic growth with the release of stronger-than-expected ISM surveys, German IFO business climate survey and Chinese Q2 real GDP growth data.
Putnam Investment's 2015 Financial Advisors and Social Media SurveyPutnam Investments
Putnam Investments surveyed over 800 financial advisors to learn more about how they are using social media for business. The findings are the fourth annual iteration of the study.
We expect rate volatility to remain high as Fed tapering continues and as the U.S. labor market struggles to normalize. In Europe, the European Central Bank has moved a step closer to easier monetary policy, which may drive further spread compression in peripheral sovereign bonds. Recent stability in emerging-market asset markets suggests better data for developing countries could be on the horizon. Our outlook for credit, prepayment, and liquidity risks remains positive.
The Fed’s surprise September decision not to taper its bond buying program complicates the development and reliability of consensus policy expectations. We believe the current decline in labor participation may be more structural than cyclical, which could lead to rapid policy tightening at some point in 2014. We believe longer duration-oriented indexes, and fixed income approaches that align closely with them, present inordinately high risks to investors in the current environment.
If U.S. politics do not derail the recovery, pent-up demand can drive faster economic growth. Fixed-income outflows appear likely to continue, pushing rates higher.
Retirement planning should be based on an understanding of generating a lifetime income stream. Putnam’s Lifetime Income experience has demonstrated a positive influence on participant savings behavior. The U.S. Department of Labor’s goal of adding lifetime income illustrations on pension benefit statements advances the effort to help retirement plan participants make better savings decisions. Rules governing the distribution of this information should be flexible and open to innovation.
The portfolio’s pro-cyclical bias was beneficial as we continued to see a shift in favor of cyclical stocks over defensive sectors. Over the past few years, we have seen a significant expansion in the universe of companies with the ability and willingness to pay a dividend. Given the speed with which stocks have advanced and the introduction of increased interest-rate volatility, I would describe my outlook for equities as cautious for the short term.
While U.S. stocks finished the quarter with positive results, a range of global assets lost ground as bond yields jumped and commodity prices fell. The portfolio’s emphasis on U.S. equities and an underweight to interest rate risk, while helpful, did not offset declines across a range of global investments. The fund continues to pursue a flexible balance of risk exposures.
Five years after the worst economic crisis of our lifetimes, we are still feeling the after-shocks around the world.
Our recent financial past seems to herald one certainty for our collective
financial future: The investment world we grew up with has changed utterly.
Conventional wisdoms shaped by decades of high-return investing — first in equities from 1982 to 2000, then in fixed income markets over most of this century — need to be reexamined, revised, or even scrapped.
Remarks by Robert L. Reynolds, President and Chief Executive Officer, Putnam InvestmentsFinancial Advisor/Private Wealth Innovative Retirement SymposiumOrlando, Florida, March 12, 2013
One reason I was pleased to be invited is that Financial Advisor’s slogan, “Knowledge for the Sophisticated Investor,” echoes the core themes I want to talk with you about today. I believe that there is a crying need — among asset managers, advisors, and investors — for new thinking and new solutions.
Abraham Lincoln’s great adage “As our case is new, so we must think anew and act anew” has never been more relevant. Five years after the worst economic crisis to hit global capitalism in our lifetimes, we are still feeling the aftershocks. We find ourselves moving ever so tentatively into a financial future about which the only thing we seem sure of is that it will likely be very different than the investment world we all grew up with.
Core topics
To me, this suggests that the conventional wisdoms shaped by decades of high-return investing — first in equities from 1982 to 2000, then in fixed-income markets over most of this young century — need to be re-examined, revised, or even scrapped.
And while I certainly don’t claim to have all the answers, I do want to sketch some of the new solution-oriented approaches that Putnam sees emerging, such as innovative investment strategies, changed views on portfolio construction, greater risk-awareness, and advances in practice management, including new technologies to enable advisors to reach and influence clients.
I would also like to suggest three retirement policy innovations that the financial services industry should take the lead on — now.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the what'sapp information for my personal pi vendor.
+12349014282
The Rise of Generative AI in Finance: Reshaping the Industry with Synthetic DataChampak Jhagmag
In this presentation, we will explore the rise of generative AI in finance and its potential to reshape the industry. We will discuss how generative AI can be used to develop new products, combat fraud, and revolutionize risk management. Finally, we will address some of the ethical considerations and challenges associated with this powerful technology.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the what'sapp contact of my personal pi vendor
+12349014282
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the what'sapp number of my personal pi merchant who i trade pi with.
Message: +12349014282 VIA Whatsapp.
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the what'sapp contact of my personal pi merchant to trade with
+12349014282
how to sell pi coins in Hungary (simple guide)DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the what'sapp contact of my personal pi merchant below. 👇
+12349014282
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...
Putnam Global Income Trust Q&A Q2 2013
1. PUTNAM INVESTMENTS | putnam.com
Q2 | 2013 » Putnam Global Income Trust Q&A
Global bond markets decline
as investors deliberate the
impact of reduced Federal
Reserve bond buying
D. William Kohli
Co-Head of Fixed Income, Portfolio Manager
Additional Portfolio Managers
Kevin F. Murphy
(industry since 1988)
Michael V. Salm
(industry since 1989)
Michael J. Atkin
(Industry since 1988)
Not shown
Key takeaways
•Global bond markets fell in May and June, as investors contemplated the end
of massive liquidity from the U.S. Federal Reserve’s bond-buying program.
•The fund’s overweight exposure to the strengthening U.S. dollar aided
performance during the quarter, as did our holdings of commercial mortgage-
backed securities.
•Our mortgage credit holdings and our allocation to high-yield bonds generated
positive returns early in the period before investors began to shed risk in May, but
the positions remained positive overall for the quarter.
•We have a generally positive outlook for global economic growth and are seeking
to capitalize on opportunities in spread sectors exhibiting improved relative value.
What was the global bond market environment like in the second
quarter of 2013?
Bond markets around the world were influenced by improving U.S. economic
data, which sparked debate among investors about when the Federal Reserve
would begin to scale back its stimulative bond-buying program. These concerns
intensified in June, when Fed Chairman Ben Bernanke announced that the central
bank could begin reducing its stimulus program later in 2013, and end it by mid
2014, sooner than investors expected. Spread sectors — meaning sectors that
trade at a yield premium to U.S. Treasuries — which had been buoyed by the
massive liquidity created by the Fed’s asset purchases, sold off, with emerging-
market [EM] bonds getting hit particularly hard. Global government bonds also
fell, although not to the same degree as sectors entailing greater risk.
What prompted Chairman Bernanke’s announcement?
U.S. economic data has been slowly improving, including signs that employment
is picking up, while inflation has continued to hover below the Fed’s target of
two-and-a-half-percent. I think it’s important to note, however, that the central
bank hasn’t taken direct action yet. After Chairman Bernanke’s comments,
several other Fed officials tried to reassure the market that the tapering of bond
purchases remained data dependent and that the cutback in purchases doesn’t
mean that a policy shift to raising rates would be forthcoming anytime soon. In
our view, the debate about when the Fed will begin curtailing quantitative easing
is healthy because it allows investors to think about what the financial markets
will look like when major sectors are no longer being propped up by massive
government intervention.
2. Q2 2013 | Global bond markets decline as investors deliberate the impact of reduced Federal Reserve bond buying
PUTNAM INVESTMENTS | putnam.com 2
How did your currency strategy affect the
fund’s performance?
In early May, the U.S. dollar began to strengthen
versus other major currencies, so our substantial dollar
overweight versus the benchmark aided relative perfor-
mance. Underweight exposure to the Japanese yen also
provided a boost, as the yen weakened significantly
following the Bank of Japan’s announcement that it
would take a more aggressive approach to monetary
easing. By mid quarter, we had significantly reduced the
fund’s currency risk by cutting back most of our active
foreign currency positions, particularly in emerging
markets. We felt this was prudent in light of heightened
risk in the marketplace.
How did the fund’s mortgage-related
strategies work out?
Our mortgage prepayment strategies hurt the fund’s
results overall for the quarter. As the quarter began,
given the uncertainty about Fed policy, the pace of
home refinancing, and that interest rates are still at low
levels, our holdings of collateralized mortgage obliga-
tions [CMOs] significantly underperformed. However,
the sector rebounded nicely in June, and we sought to
capitalize on CMOs’ improved relative value by boosting
the portfolio’s allocation. With the increase in interest
rates, interest-only [IO] CMOs did particularly well,
because higher rates led to slower prepayments of the
mortgages underlying the securities.
Conversely, our mortgage credit holdings — both
non-agency residential mortgage-backed securities
[RMBS] and commercial mortgage-backed securities
[CMBS] — helped performance, especially earlier in
the quarter, as investors took advantage of attractive
spreads and positive underlying fundamentals in the
sector. As the quarter progressed, we sought to reduce
risk by shifting the fund’s allocation from RMBS into
CMBS, which were performing better.
How did the fund’s allocation to corporate
credit influence performance?
Our holdings of investment-grade and high-yield
corporate bonds were slightly beneficial, as strong
performance in April was only partially offset by the
sell-off that occurred in May and June. Similar to EM
debt and non-agency RMBS, high-yield bonds were
hampered more by capital flows and market “techni-
cals” [that is, supply and demand dynamics] than any
breakdown in fundamental support. In fact, the funda-
mental backdrop for high-yield bonds remained solid;
issuers are in reasonably good financial shape and the
default rate remained low at quarter-end. Moreover,
high-yield bonds have historically tended to do well
during periods of moderate economic growth.
What is your outlook for the months ahead?
We believe the U.S. economic recovery is on track and
should continue at a moderate pace. Despite higher
mortgage rates, we believe the U.S. housing recovery
will continue. In our view, home sales are improving
because of stronger economic activity and better
consumer confidence, and not solely because of low
mortgage rates. Outside the United States, the global
environment appears to be relatively stable, except for
China, where weaker growth and high consumer debt
levels have created challenges for a government that is
trying to stimulate domestic demand.
Peripheral eurozone economies have performed
better than we anticipated, thanks to sharply lower
interest rates in those countries. Core European econo-
mies were somewhat weaker than we expected but,
near the end of the quarter, data from Germany, the
Netherlands, and Switzerland was encouraging.
As for interest rates, while we believe global rates are
likely to move higher over the medium to longer term,
we think the degree of increase during the quarter was
more than the current economic environment warrants.
Consequently, in order to tactically position the fund
to potentially benefit from any near-term fall in rates,
we modestly lengthened the portfolio’s duration by
quarter-end.
Where are you finding the most attractive
investment opportunities?
Following the liquidity-driven sell-off in various spread
sectors, we selectively added back CMBS and added
more modestly to high-yield bonds, seeking to benefit
from the improved relative value in these sectors. We
also increased our allocations in peripheral European
government bonds, specifically in Italy, Spain, and
Greece. In addition to the improved economic backdrop
in these countries, we think these bonds offer favorable
technical characteristics versus the bond markets in
many developing nations.
3. Q2 2013 | Global bond markets decline as investors deliberate the impact of reduced Federal Reserve bond buying
Putnam Retail Management
Putnam Investments | One Post Office Square | Boston, MA 02109 | putnam.com EO135 281761 7/13
The views and opinions expressed are those of the portfolio managers as of June 30, 2013, are subject to change with
market conditions, and are not meant as investment advice. All performance and economic information is historical and
is not indicative of future results.
Consider these risks before investing: International investing involves currency, economic, and political risks. Emerging-
market securities carry illiquidity and volatility risks. Lower-rated bonds may offer higher yields in return for more risk.
Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment
risk and the risk that they may increase in value less when interest rates decline and decline in value more when interest
rates rise. The fund invests in fewer issuers or concentrates its investments by region or sector, and involves more risk
than a more broadly invested fund. The fund’s policy of concentrating on a limited group of industries and the fund’s
non-diversified status, which means the fund may invest in fewer issuers, can increase the fund’s vulnerability to common
economic forces and may result in greater losses and volatility. Bond investments are subject to interest-rate risk (the
risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal
payments). Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade
bonds. Risks associated with derivatives include increased investment exposure (which may be considered leverage)
and, in the case of over-the-counter instruments, the potential inability to terminate or sell derivatives positions and the
potential failure of the other party to the instrument to meet its obligations. Unlike bonds, funds that invest in bonds have
fees and expenses. Bond prices may fall or fail to rise over time for several reasons, including general financial market
conditions and factors related to a specific issuer or industry. You can lose money by investing in the fund.
Request a prospectus or summary prospectus from your financial representative or by calling 1-800-225-1581.
The prospectus includes investment objectives, risks, fees, expenses, and other information that you should read
and consider carefully before investing.
Putnam Global Income Trust (PGGIX)
Annualized total return performance as of June 30, 2013
Class A shares
(inception 6/1/87) Before sales charge After sales charge
Barclays Global Aggregate
Bond Index
Last quarter -2.61% -6.50% -2.80%
1 year 3.30 -0.83 -2.18
3 years 5.34 3.92 3.55
5 years 6.74 5.87 3.68
10 years 6.10 5.67 4.79
Life of fund 7.11 6.94 —
Total expense ratio: 1.10%
Returns for periods of less than one year are not annualized.
Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results.
Share price, principal value, and return will vary, and you may have a gain or a loss when you sell your shares. The class
A share performance shown assumes reinvestment of distributions and does not account for taxes. After-sales-charge
returns reflect a maximum load of 4.00%. For a portion of the periods, the fund had expense limitations, without which
returns would have been lower. To obtain the most recent month-end performance, visit putnam.com.
Barclays Global Aggregate Bond Index is an unmanaged index of global investment-grade fixed-income securities.
You cannot invest directly in an index.